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    Inspection Services Agreement

    This INSPECTION SERVICES AGREEMENT (“Agreement”) is entered into this day of ____________, 20___, by and between 03 Inspections, LLC (“Inspector”) and _____________________ (“Client”).

    Client will pay the sum of $_______ for a limited visual inspection of the property located at: ___________________________________________________________.

    In consideration of the promise and terms of the Agreement, the parties agree as follows:

    1. PAYMENT. Payment is due prior to inspection or, at the latest, at the time of inspection. Client understands and acknowledges that Inspector will not release the inspection report unless and until payment is received in full. Client agrees to pay all legal-related expenses incurred by Inspector in collecting past-due payments owed for inspection services.

    2. STANDARDS. The inspection of the property shall be performed by Inspector for Client in accordance with the standards of practice of the InterNACHI, including the limitations, exceptions and exclusions as set out in the standards of practice. A detailed description of the current standards of practice can be found at the following website: http://www.nachi.org/sop.htm. These standards of practice inform Client of what a home inspector should report and what Client should not expect the home inspector to report.

    a. **Client agrees that he/she has been provided with an opportunity to review the InterNACHI Standards of Practice and waives the right to a more comprehensive, technical inspection by specialists. (Client’s Initials Here): __________.

    3. SCOPE OF INSPECTION SERVICES.

    a. Purpose and Scope. The purpose and scope of this inspection is to provide Client with a better understanding of the property’s condition as observed at the time of the home inspection. The inspection is a limited visual inspection as a generalist. Inspector will prepare a written report of the apparent conditions of the readily accessible installed systems and components of the property existing at the time of the inspection. Client assumes all risk for problems noted in this report that may reveal further damage during a repair or warrant further investigation by a qualified professional.

    b. No Warranties or Guarantees. Inspector is limited by this Agreement and cannot be expected to find or discover all defects on the premises. The parties agree and understand that Inspector is not an insurer or guarantor against defects in the structure, items, components, or systems inspected. The inspection is not intended to be technically exhaustive. Inspector makes no guarantee or warranty, expressed or implied, as to the fitness for use, condition, performance, or adequacy of any inspected structure, item, component, or system, and Inspector’s report should not be relied on as such.

    c. Items Excluded from Inspection. Latent and concealed defects and deficiencies, aesthetic concerns and cosmetic defects are excluded from the inspection. Also, Inspector is not bound to report on other matters including, but not limited to, the suitability for a particular use, marketability or insurability of the property, the life expectancy of the property or any of its systems or components, compliance with codes or regulations, the presence of rodents, birds, animals, insects, mold, mildew, fungus, airborne hazards, environmental hazards, electromagnetic fields, or hazardous waste conditions. Further, Inspector is not required to move any personal items or obstructions that might restrict his/her visual inspection including but not limited to, carpet, wall hangings, debris, plants, pets, dirt, or snow. Inspector is also not required to access any unsafe area or engage in any unsafe activity during the course of the inspection (with the definition of “unsafe” to be determined by the Inspector’s sole discretion), enter crawlspaces, underground areas, attics, or other inaccessible areas, inspect security systems or speaker systems. For a comprehensive list of what the Inspector will and will not expect, Client may refer to the InterNACHI standards referenced in Section 2.

    d. Client’s Right to Be Present. Inspector’s interpretation of what is good, fair, and satisfactory may differ from that of Client; therefore, Client is encouraged to be present at the time of inspection so that both parties will have an understanding of each other’s perception.

    e. Additional Inspections/Repairs May Be Required. Any item referenced in the inspection report may need additional inspection(s) by qualified specialist(s) who can investigate further. Inspector shall not be responsible for repairs or replacements with regard to the property, systems, components, contents, or any other items mentioned in the inspection report.

    4. REPAIRS OR REPLACEMENTS. The parties understand and agree that Inspector and its principals, employees, agents, and representatives assume no liability or responsibility for the cost of repairing or replacing any reported or unreported defects or deficiencies either current or arising in the future or any property damage, consequential damage or bodily injury of any nature.

    5. LIMITATION ON LIABILITY. Inspector’s liability for mistakes or omissions in this inspection report is limited to a refund of the fee paid for this inspection and report. The liability of Inspector’s principals, agents, employees, and representatives is also limited to the fee paid. This limitation applies to anyone who is damaged or has to pay expenses of any kind because of mistakes or omissions in this inspection and report. This liability limitation is binding on Client and Client’s spouses, heirs, principals, assigns, and anyone else who may otherwise claim through Client. Client assumes the risk of all losses greater than the fee paid for the inspection. Client agrees to immediately accept a refund of the fee as full settlement of any and all claims which may ever arise from this inspection.

    6. NOTICE AND LEGAL ACTION REGARDING CLAIMS.

    a. Unreported/Incorrect Condition. In the event of a claim by Client that a visually discernible installed system or component of the premises which was or should have been inspected by Inspector was either unreported or was not in the condition reported by Inspector, Client agrees to notify Inspector in writing within ten (10) business days of discovery. Client agrees to allow Inspector access to the premises to review conditions of any alleged claim. Client further agrees that Inspector shall be liable only up to the cost of the inspection.

    b. Repairs/Replacements. Client agrees to notify Inspector in writing within ten (10) business days prior to repair or replacement of such system or component (with the sole exception being emergency conditions). Client agrees to allow Inspector access to the premises to review conditions of any alleged claim. Client further agrees that, with the exception of emergency conditions, Client or Client’s agents, employees or independent contractors will make no alterations, modifications, repairs, replacements, or corrections to the claimed discrepancy prior to a re-inspection by Inspector. Client understands and agrees that any failure to notify Inspector as stated above shall constitute a waiver of any and all claims for said failure to accurately report the condition in question. Regardless, Client understands and agrees that Inspector may be held liable only up to the cost of the inspection.

    c. Legal Action. Client agrees that any legal action must be brought within ninety (90) days from the date of the inspection; otherwise, Client’s ability to bring suit against Inspector shall be deemed waived and forever barred. In the event that Client fails to prove any adverse claims against Inspector, Client agrees to pay all legal costs, expenses, and fees incurred by Inspector in defending said claims.

    7. CONFIDENTIAL REPORT. The inspection report to be prepared for Client s solely and exclusively for Client’s own information and may not be relied upon by any other person. Client agrees to maintain the confidentiality of the inspection report and agrees not to disclose any part of it to any other person, with the exception being that Client may distribute copies of the inspection report to the seller and the real estate agents directly involved in this transaction, but said persons are not specifically intended beneficiaries of this Agreement or the inspection report. Client and Inspector do not in any way intend to benefit said seller or the real estate agents directly or indirectly through this Agreement or the inspection report. Client agrees to indemnify, defend, and hold Inspector harmless from any third party claims arising out of Client’s unauthorized distribution of the inspection report.

    8. ALTERNATIVE DISPUTE RESOLUTION. Any disputes or actions regarding the interpretation of this Agreement, of the inspection report, or of any claim based upon either this Agreement or the inspection report shall be subject to mediation between the parties. The Inspector’s liability shall not exceed the cost of the inspection.

    9. LEGAL AUTHORITY. By signing this Agreement, Client asserts that he/she is within legal authority to sign as a representative of the household for which the inspection is being completed.

    10. ENTIRE AGREEMENT. This Agreement supersedes any and all agreements, either oral or written, between the parties hereto with respect to the performance of Services by Contractor for Inspector and contains all of the covenants and agreements between the parties with respect to the performance of such Services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, that are not contained herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding. Any modification of this Agreement will be effective only if it is in writing signed by each party.

    11. SEVERABILITY. Client and Inspector agree that should a Court of Competent Jurisdiction determine and declare that any portion of this Agreement is void, voidable, invalid, or unenforceable by law, the remaining provisions and portions shall remain in full force and effect. Moreover, if any one or more of the provisions contained in this Agreement shall be held to be excessively broad or partially invalid, illegal, or unenforceable, it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall appear.

    12. WAIVER. No waiver by Inspector of any breach of this Agreement shall be a waiver of any preceding or succeeding breach. No waiver by Inspector of any right under this Agreement shall be construed as a waiver of any other right.

    13. CHOICE OF LAW/VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of Tennessee. Venue shall be in Knox County, Tennessee. The parties agree that the exclusive venue for any litigation arising out of this Agreement shall be in Knox County, Tennessee, where Inspector has its principal place of business.

    14. Right To Terminate. The inspector has the right to terminate the inspection without refund at any time if he or she perceives unsafe conditions, sexual misconduct, or verbal/physical assault is imminent.

    By signing this Agreement, the parties agree that they have read this Agreement in its entirety and that they understand and agree to all provisions contained within this Agreement.

    Does Client’s Realtor/Real Estate Agency have permission to receive a copy of this report? Yes No

    Realty Company: ___________________________________
    Agent: _____________________________________________

    Signature of Client: __________________________________
    Date: _______________________________________________

    Signature of Inspector: _______________________________
    Date: _______________________________________________